Annual Report 2020

VALUECREATION BUSINESSMODEL How We Create Value AirAsia is a pioneer in low-cost air travel in Asean, adapting the lean, no-frills business model employed in US and Europe to the local landscape in order to democratise air travel. A key component of our model has been to do away with physical sales outlets by encouraging travellers to book their flights online. Over the years, digital data accumulated in this manner have opened up new business possibilities. Seizing these opportunities, we have transformed into what we are today – a digital travel and lifestyle company. Total equity, borrowings and income from our operations enable us to meet our day-to-day as well as growth financial requirements. • Total equity : -RM3.6 bil • Total borrowings : RM1.3 bil • Private placement exercise raised in 1Q 2021 : RM336mil Our Allstars are the driving force of AirAsia, helping us develop and execute our strategies, and maintaining strong relationships with guests, customers, business partners and the community. • No. of Allstars group-wide : 18,848 • % female Allstars : 35% Over the years, we have been building a robust IT infrastructure to support both our airlines and digital businesses. We also have various systems and processes that ensure safe and efficient flight operations. Meanwhile, the AirAsia brand has become a household name throughout Asia. • Data : from over 600 million guests • Digital partners : Google, GE, Oracle, VisionBox, Salesforce, etc We operate a fleet of 210 aircraft and operate out of headquarters in each of our four main bases in Malaysia, Thailand, Indonesia and the Philippines. We also have a digital hub in Bengaluru, AirAsia Software Engineering & Technology (AASET); and a digital training centre, Redbeat Academy housed in Kuala Lumpur. • Aircraft : 168 Airbus A320; 38 Airbus A320neo; 4 Airbus A321neo • Airline headquarters : RedQ (Malaysia), RedNest (Thailand), RedHouse (Indonesia), RedPoint (Philippines) • Digital headquarters : RedStation (airasia super app),Wisma Tune (other digital entities) We place great emphasis on our relationship with guests (customers) while building strong trust-based relationships with our business partners and the investing community. Through AirAsia Foundation, we support the development of a number of under-served communities throughout Asean. • Guests flown to date : over 600 million • BIG Members : 25 million • Social enterprises supported : 28 Our airline operations depend heavily on jet fuel, which is derived from oil & gas. However, it is part of our business model to minimise our fuel consumption in order to reduce costs and decrease our carbon footprint. • Fuel consumption : 617,567 tonnes • Electricity consumption : 5,989,781 kWh INPUTS OUR BUSINESS Financial Capital Human Capital Intellectual Capital Manufactured Capital Natural Capital Social & Relationship Capital AIRLINES • Provide safe and affordable flights for people in Asean • Provide maintenance, repair and overhaul (MRO) services for airlines in the region • Provide ground-handling services for our own and third-party airlines in Malaysia and Singapore • Asean fast-food chain Santan DIGITAL • Travel, e-commerce and fintech services via the airasia super app • Fintech services through BigPay • L ogistics, Freightchain & home delivery via Teleport • Lifestyle BIG Rewards programme • Farm-to-tablemarketplace via airasia farm • Digital training at Redbeat Academy SUPPORTED BY √ Good governance √ Robust safety & risk management √ ESG principles √ Our Allstar Values: • Dare to Dream: progress comes from innovation. Both require change to happen. • Safety Always: Safety is everyone’s responsibility. It starts with you. • Make It Happen: Learn fast and deliver more with less. • People First: Care for our people. Care for our guests. • One AirAsia: We are one digital company, with one vision and one people. • Be Guest Obsessed: Understand deeply what our customers want, then give themmore than they expect • Sustainability Spirit: Acting today for a better tomorrow 58 AIRASIA GROUP BERHAD